Price Elasticity of Demand: Understanding and Calculation

StrongerDetroit avatar
StrongerDetroit
·

Start Quiz

Study Flashcards

31 Questions

What does the Price Elasticity of Demand measure?

How is the Price Elasticity of Demand calculated?

Why is the Price Elasticity of Demand always expressed as a positive number?

How does elasticity affect demand analysis?

What does the slope of a demand curve indicate?

What is the significance of substitution in determining elasticity of demand?

What is the formula to calculate the price elasticity of demand?

When is demand considered to be unit elastic?

What does it mean if demand is perfect inelastic?

What makes demand more or less elastic according to the text?

What is the most important determinant of price elasticity according to the text?

Which curve represents perfect elastic demand according to the text?

For non-durable goods, demand is more elastic over a long period relative to a short period because:

What does it mean if a good has substitutes according to the text?

"Elasticity is not the same as slope, but, the steeper a curve is at a given point, the less elastic demand." This statement implies that:

What is the formula to calculate the price elasticity of demand?

When is demand considered to be unit elastic?

How does elasticity affect demand analysis?

What makes demand more or less elastic according to the text?

"Elasticity is not the same as slope, but, the steeper a curve is at a given point, the less elastic demand." This statement implies that:

What does it mean if a good has substitutes according to the text?

What is the price elasticity of demand if the percentage change in quantity is greater than the percentage change in price?

What is the price elasticity of demand if the percentage change in quantity is less than the percentage change in price?

When is demand considered to be unit elastic?

What is demand considered to be if the quantity does not respond at all to changes in price?

What is demand considered to be if the quantity responds enormously to changes in price?

According to the text, what makes demand more or less elastic?

Why is demand more elastic over a long period relative to a short period for non-durable goods?

Why is the demand for products like salt considered quite inelastic?

What does the slope of a demand curve indicate according to the text?

What does substitution have the most significant impact on, according to the text?

Description

Test your knowledge on the meaning and calculation of Price Elasticity of Demand, as well as the different types of Price Elasticities. Explore the relationship between elasticity and the slope of the demand curve.

Make Your Own Quiz

Transform your notes into a shareable quiz, with AI.

Get started for free
Use Quizgecko on...
Browser
Browser